Atwater delays water rate increase for residents, businesses due to coronavirus. Here’s why
Atwater’s annual water rate increase was temporarily halted by City Council on Monday in an effort to provide some respite for residents and business owners strained by impacts of the coronavirus pandemic.
The unanimous decision was made immediately following the news from Gov. Gavin Newsom that broader statewide and county-specific business closures would return to Merced County due to escalating coronavirus cases.
“We already know what COVID-19 is doing to our community,” said Councilmember Danny Ambriz, who suggested delaying the rate increase. “Especially now with the shut downs again, more people are going to be out of work and so forth.”
The council settled on a four-month stay before they will increase the water rates. Beginning Aug. 1, rates will temporarily revert to those of the prior fiscal year.
City Council adopted in early 2019 a five-year plan for metered, non-metered and commodity water rate increases. Through 2023, prices will increase every July 1. This means Atwater residents had to pay the adjusted rate this July, but will see rates drop back through the next four months.
Putting off the rate increase incurs about a $33,000 fiscal impact per month, said Finance Director and Treasurer Kellie Jacobs-Hunter.
She also noted that while residents are still responsible for their bill, state protections are in place to prohibit shutting off water for late payment or charging standard late fees. Otherwise, the city would have charged about $16,000 in late/shutoff fees during April and May of this year, Jacobs-Hunter said.
Councilmembers agreed a four-month stay is appropriate for the city’s needs. Residents will not be responsible for the difference between the July 1 rate and the temporary decrease at any time, City Manager Lori Waterman said.
“Everybody that just went back to work and began to breathe has now probably stopped receiving an unemployment check probably, and had to go home today and reapply for unemployment,” said Councilmember Cindy Vierra.
“Now it’s our time as a city to say hey, we want to help you,” she added.
Atwater officials said the most recent business closures mandated by Gov. Gavin Newsom do not change the city’s stance on being a sanctuary city for businesses and churches to remain open.
The resolution is meant to affirm the city’s support of local businesses amid the pandemic, and means there will be no local enforcement of state-mandated restrictions.
However, city officials have continued to stress that they have no jurisdiction over protecting the state licenses of businesses that choose not to comply with the state.
